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Electricity rate for subsidized clients to increase 3 times next year
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A PLN technician checks an electricity meter at a house in Kebayoran Lama, Jakarta, on Nov. 17, 2015. (JP/Wendra Ajistyatama)
T
he government will gradually increase the electricity rate for the 900 volt ampere (VA) category starting Jan. 1, following a decision to revoke the subsidy for 18.85 million customers in this group.
Energy and Mineral Resources Ministry director general of electricity Jarman said a price hike will be announced three times in 2017. The government will also adjust the electricity rate for 450 VA, which is expected to increase four times in the same period.
The ministry is preparing a regulation on the electricity price hike for the two consumer groups. "Regulation for 900 VA is expected to be issued before January 1. On December, at the latest," he said in Jakarta on Wednesday.
Earlier, the government and the House of Representatives agreed to allocate Rp 44.89 trillion worth of electricity subsidy in the 2017 state budget, slightly below the initial figure proposed by the government at Rp 48.56 trillion.
Next year, the electricity subsidy will only be enjoyed by 23.5 million PLN users, consisting of 19.1 million users of 450 VA electricity and 4.05 million users of 900 VA.
The subsidy is enjoyed currently by 45 million customers, comprising 22.8 million users of 450 VA and 22.9 million users of 900 VA. (ags)
